Monte Carlo Fashions reports strong Q2, eyes higher FY26 revenue growth

Monte Carlo Fashions Limited announced a robust performance for the second quarter and first half of fiscal year 2026. For Q2, revenue increased by 13% year-on-year to INR249 crores, with EBITDA surging 47% to INR42 crores, resulting in EBITDA margins of 16.73%. Net profit for the quarter nearly doubled to INR16 crores. For the first half, revenue from operations grew 12% to INR387 crores, and EBITDA rose approximately 37% to INR36 crores, with a 9.2% EBITDA margin. The company moved from a loss of INR5 crores in H1 FY25 to a profit after tax of INR4 lakh in H1 FY26.

The company attributed the margin expansion to sales growth, stabilized raw material prices allowing for product price hikes, and reduced discount sales and returns. Monte Carlo Fashions anticipates at least a 200 basis point margin expansion for the current year. Given positive winter season progress, the company expects to revise its guidance upwards from the current 10% to 15% revenue growth after the third quarter.

Monte Carlo Fashions also highlighted strong momentum in online sales, particularly through its own website, and plans to open 40-45 new Exclusive Brand Outlets (EBOs) focusing on Western and Southern India. Footwear sales are projected to double to INR12-13 crores this year. The company is also exploring solar power investments of around INR50 crores with an expected project ROI of 30%.